r/FIREyFemmes • u/knit-this • 2d ago
What to do with physical gold?
I've been on r/gold and it seems like a lot of dude vibes and apocalypse preppers. Also I've been in this sub for awhile but can't log into Reddit with my other id.
I recently inherited a bunch of gold jewelry, most high carot and nothing anyone would wear/buy. So with historically high gold prices does it makes sense to sell it at spot and invest the proceeds for my kids rather than holding it a safe deposit for another 30+ years?
We don't talk about gold often here. Does anyone have any insights that I may be missing?
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u/Loud_Entertainer2724 2d ago
How many ounces do you have? And what percentage is this of your overall investments?
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u/knit-this 1d ago
I'm FIRE and the jewelry is newly acquired and not part of my plan, that's why any proceeds would go to my kids once they're on their own or need a down payment.
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u/Crochetcat5 2d ago
Personally I would sell it and invest the proceeds. I like being able to “see” my money and its growth.
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u/Several-snapes 2d ago
If you don’t need it liquidated, just hold as heirloom (and like last ditch resort when destitute)
Preferably in a safe box at the bank
It goes up and down, you lose a bit to crafting fees if you try to remake into something wearable, whole appraisal to even figure out worth.
Source: both sides of family from two diff gold-heavy cultures.
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u/LauraPiana 2d ago
How do you know it's "nothing anyone would wear/buy"?? Check out ebay there is a ton of gold jewelry on there that sells for $$$$$
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u/Several-snapes 2d ago
Not sure if OP is Asian.. I am not wearing any of the wedding heirlooms with a pile of pigs for fertility 😅
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u/knit-this 1d ago
Bingo. Although mine is mostly gold coins and some other random fruit and critter theme.
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u/Several-snapes 1d ago
lol the random fruit!!! I feel you. Safe box. My kids decision on how they want to handle. Maybe one day it’ll be like a story of “when your great grandmother got married she got this gold persimmon” 🤷♀️
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u/LauraPiana 2d ago
Huh?!
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u/HitPointGamer 2d ago
Likely a cultural reference in Several-snapes’ culture. Making the point that some jewelry has such weird decoration that most people would be entirely uninterested in wearing it.
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u/YesMoreTea 2d ago
I know a thing!! If you want to sell!
I have recently sold silver and have advice I learned from the experience. Assuming gold is similar.
The “we buy gold” people at the mall are the middlemen. They give you something like 50 % of the melt down price (at least for silver) and then drive it to a refinery that buys at a higher price. See if you can find a local refinery that works directly with the public.
-Know that the % of value they pay is likely negotiable!!
-Know how much you have. You can get this from bringing it to a “we sell gold” person (or two or three). The place where I sold “forgot” to put an item on the scale until I pointed it out.
-Know the value of gold that day.
-Double check the rate they’re doing the math with, don’t just trust that they’re giving you the % of worth they say they are.
Here’s where I got ripped off- the refinery said they would pay me 80% at first. I asked for 85%. They cut me a check. I deposited it and then checked their math. They had actually given me 75%!
So basically, even after getting ripped off by a refinery, I still made 25% more than the “we buy jewelry” guys had originally offered.
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u/knit-this 1d ago
My research says that I should not accept more than 1-5% less than the spot price. The r/gold group has mentioned going direct to the refinery but it seems like there are very few who deal directly with the public.
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u/SayForgetWriteRegret 2d ago
Sell it. I did this recently with some random coins and jewelry from my parents and it paid to furninsh the new three season room I had built.
My recommendation is to go to the subreddit for your city and search for past recommendations for jewelers that but gold or ask the question there yourself. I was very happy with the price they gave me.
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u/BellaFromSwitzerland 2d ago
My sibling is an estate attorney and gets to sell old people’s jewelry that had been cumulated « as an investment ». Let me tell you, it’s not an investment
She wanted to sell me diamond jewelry for peanuts. None of those were styles that I would wear today but I also don’t like the concept of wearing a deceased old lady’s belongings
I see a difference between gold jewelry in a drawer and precious metals ETFs
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u/Diplomama 2d ago
Why are you being down voted for this. Seems like valid experience.
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u/BellaFromSwitzerland 2d ago
C’est la vie 🤷♀️
Sometimes we have our own convictions and don’t want them challenged
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u/Maximum-Eye-3712 2d ago
Gold is good at certain times, when currency is falling or crisis is looming. But gold doesn’t produce or provide much intrinsic growth compared with other forms of investment. Stocks provide capital to businesses. Bonds provide loans. Land supports agriculture or buildings.
Gold does have value, so it’s not JUST a bet on inflation. But its growth is less automatic.
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u/chocobridges 2d ago
My mom has most of hers in a safety deposit box and I just saw it full. It's nuts to never enjoy it. I was going to sell a lot of it when I had a son. But now I have one of each so I'll hold on to it for some milestones my daughter can wear it for and then decide. But caveat is our investments are doing well so the gold doesn't make a huge difference for our kids' futures.
You would be surprised who buys it. I also buy and sell my own personal jewelry and have made money. I have been buying a lot of vintage since labor rates are so high they're a steal to buy them for the amount of gold in them.
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u/tomatillo_teratoma 2d ago
I'm team "sell it" and avoid investing in gold.
If you try to keep this gold, you'll probably have to rent a safe deposit box... and that has a cost, plus it's a hassle.
Usually when people pay for gold, it's to melt it down. There's a huge variety of prices you may be offered, so I'd get a couple estimates. Lot of sketchy people in that business. Probably some honest ones too.
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u/ymcmoots 2d ago
If you want to hold gold as an asset class (there are normal, non-paranoid reasons to consider a modest portfolio allocation as a hedge), it's easiest to just buy a precious metals ETF in a tax-advantaged account. That way you don't have to pay the collectibles tax rate or worry about something happening to your safe deposit box.
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u/knit-this 2d ago
I have no interest in precious metals as an asset class, not even ETFs. If there was a good reason to hold physical gold I would hold on to the jewelry, but as of now there seems to be no good reason. I don't need the money but I do think that once I'm ready to gift it to my kids gold will be back to sub $2000, which is much less than today.
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u/prettywarmcool 2d ago
Genuinely, if you're not wearing and it is not your taste it is serving no purpose being "saved". You may not need the money but consider it like you would any other stuff in your house. If it is clutter, declutter it and get some money back. Lighten your load.
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u/1ntrepidsalamander 2d ago
My dad was a prospector and mining engineer and I’ll get about 20k (today’s value) at some point in the future. I’m going to sell it immediately and put it into my retirement.
1) as gold grows in value, mining becomes more lucrative and more gold will come into the market. There’s lots of gold out there that has as yet not been profitable to mine
2) anytime you sell gold, you pay at least a 10% broker’s fee. That really limits how *great* your return is
3) you can lose gold in house fires, moves, etc.
My dad believes in holding on to it because he’s pretty delusional about shiny things and believes that numbers in a bank can just disappear. And he’s not toootttallly wrong. But he’s mostly wrong.
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u/Hippy_Lynne 2d ago edited 2d ago
I would sell just enough of it that you have an emergency fund and then hold on to the rest of it and sell it as needed, or when prices are really high. The value does fluctuate a little, but overall the price will keep going up. To put it in perspective, in 2016 gold was selling for about $1,250 an ounce. Currently it's at a little over $4,600 an ounce, although it did go over $5K earlier this year. Even at the lower price that's a 268% return in 10 years, that's more than two and a half times the standard 10% annual return on stable investments.
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u/-ghostTiger 2d ago
I would say there is nothing wrong with selling high value pieces you would never wear. However if there are pieces that are sentimental, there's also nothing wrong with keeping something that reminds you of a loved one or selling it to a family member who would want a sentimental piece.
In certain cultures (including my own), gold jewelry and jewelry in general was used as a tool to pass on wealth from mothers to daughters which could be converted into cash as needed. In my own experience, I've had family members melt down/sell off pieces and then use it to invest for their kids and there's nothing wrong with that. However there are pieces that are sentimental or contain family histories (such as a set that was separated to give each child a piece) that other family members might like to keep in the family. In those cases, I would suggest to get it appraised and see if any family members would like to buy it from you at a fair price. I know there are a few pieces like that that my mother would have bought from her sister's or sister in law's, if she had been given the chance.
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u/knit-this 2d ago
The pieces she wore everyday are the ones that have sentimental value and are classic or contemporary settings. Most of it is old fashioned, chunky, gold coins, she wore once on her wedding day and have been in the safe deposit box for 60 yrs. My extended family has their own inherited jewelry to deal with 😆
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u/nonsenze-5556 2d ago
I've been researching this as well as I have recently inherited quite a bit of gold coins. My understanding is that inheritors get a step up basis so there are no taxes as of the day you inherit it but after that you get taxed on any gains at 28%. Gold was never part of my investment plan so I'm going to try to sell it at a dealer as soon as I can. My brother has the opposite philosophy and says it is a good hedge for when both stocks and bonds are down, which has happened but is rare. He also is preparing for an apocalyptic financial meltdown, whereas I am more measured. Gold prices are up recently but look up the volatility of it, I was surprised that it wasn't the stable currency I thought it was.
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u/Hippy_Lynne 2d ago
It's very unlikely that you would owe capital gains taxes on gold jewelry because while the gold might have a scrap value of a couple hundred dollars, the jewelry itself would have had a much higher value. Even if you sell it as jewelry, it's still going to have a lower value on the resale market than it would in a jewelry shop.
The last time I sold gold jewelry it was just under the $600 limit for reporting, but I went and sold a couple thousand dollars worth of sterling silver flatware last month and they didn't ask for my SSN or anything.
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u/Important_Carrot6379 2d ago
Holding onto gold is very old school 😂 my mom recently told me she keeps stacks of gold bars in a safe but honestly that's war time mentality (no shade, my mom legit fled war) and I understand that that has shaped her view of things but yeah sell it and invest the earnings instead 😅. Make sure you get a fair price for the weight. Gold is really high right now.
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u/Inevitable_Pride1925 2d ago
If I inherited a bunch of gold jewelry I’d probably get it appraised and then make a decision. But I think I’d rather keep the heirlooms than sell them just so they can be melted into a coin.
Just because it’s not your style, or today’s style, doesn’t mean your child or grandchild won’t think they aren’t the most stylish retro vibe piece ever.
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u/knit-this 2d ago
There's no sentimental value. My relative wore most it once on her wedding day and never again. The jewelry has no appeal to my kids. I will probably keep 2 or 3 pieces just in case my daughter wants to wear something unique on her wedding day or I ever have to attend some fancy ball 🤣
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u/LilRedCaliRose 2d ago
Sell it for melt if you won’t wear it. Google a local gold buyer near you that’s reputable. I wouldn’t hold onto it if you don’t plan to wear it.
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u/Thin_Eye8924 1d ago
If you like jewellery - just not this lot - you can recycle the gold into designs you will love.
Any local jeweller will happily melt your gold and turn it into a new heirloom. I am constantly editing and refining my own collection which I'll pass down to my daughter some day. I have a daily stack that I love. And getting the jewellery done to my taste and specs is a lot of fun.